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The Relationship between Electricity Consumption and Economic Growth in BRICS Countries

Author

Listed:
  • Heru Wahyudi

    (University of Lampung, Bandar Lampung, Indonesia.)

Abstract

This study analyzed the Gross Domestic Product (GDP) determinants in Brazil, Russia, India, China, and South Africa (BRICS). The method used in this study is a Fully Modified Ordinary Least Square (FMOLS) panel that can overcome the problem of non-stationary panels and the effect of heterogeneity between countries. The analysis range of this study is from 1992 to 2021, with three independent variables, namely electrical energy consumption, labor force, and gross fixed capital formation (GFCF) or investment. The results showed a significant favorable influence on energy consumption, labor force, and investment in GDP in BRICS countries from 1992 to 2021. This research resulted in a review of one of the policy recommendations to improve the economy in BRICS countries.

Suggested Citation

  • Heru Wahyudi, 2024. "The Relationship between Electricity Consumption and Economic Growth in BRICS Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(2), pages 349-356, March.
    • Handle: RePEc:eco:journ2:2024-02-35
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    References listed on IDEAS

    as
    1. Ahmad, Arslan & Ahmad, Najid & Ali, Sharafat, 2013. "Exchange Rate and Economic Growth in Pakistan (1975-2011)," MPRA Paper 49395, University Library of Munich, Germany, revised Jul 2013.
    2. Tri Wahyu Adi & Eri Prabowo & Oetami Prasadjaningsih, 2022. "Influence of Electricity Consumption of Industrial and Business, Electricity Price, Inflation and Interest Rate on GDP and Investments in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 331-340, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Electrical Energy; FMOLS; GDP; Investment; Labor Force;
    All these keywords.

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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